Morning Commentary: Assurant, Gaming & Leisure, Kimco offer notes; Exxon Mobil soft

By Cristal Cody

Tupelo, Miss., Aug. 15 – Two issuers marketed new bond deals on Thursday morning following fixed income investor calls held earlier in the week.

Assurant Inc. expects to price fixed-rate senior notes due 2030 after the company held a two-day session of fixed income investor calls on Monday and Tuesday.

Split-rated issuer Gaming & Leisure Properties, Inc. plans to price two tranches of registered fixed-rate senior notes through issuers GLP Capital, LP and GLP Financing II, Inc.

Gaming & Leisure Properties held fixed income investor calls on Tuesday.

Price talk on a tranche of five-year notes is in the Treasuries plus 225 basis points area, while a tranche of notes due Jan. 15, 2030 is talked to print at the Treasuries plus 270 bps area.

In other supply, Kimco Realty Corp. is offering new 30-year fixed-rate notes in the high-grade primary market.

Also, FHLBank System plans to price new five-year Global bonds on Thursday.

Investment-grade deal volume quieted on Wednesday after issuers priced more than $21 billion of bonds in the first two sessions of the week.

About $25 billion to $30 billion or higher of issuance was expected by syndicate sources this week.

Deal volume has been led so far by Exxon Mobil Corp.’s $7 billion seven-tranche offering of notes on Tuesday.

Exxon Mobil’s notes traded flat to about 4 bps wider than issuance in the secondary market, a source said.

The company’s $1.25 billion of 2.44% notes due Aug. 16, 2029 eased 3 bps in secondary trading. The notes priced at par to yield a spread of 75 bps over Treasuries.

Secondary market volume this week has included $17.6 billion of bonds traded on Wednesday, $19.08 billion on Tuesday and $15.28 billion on Monday, according to Trace data.

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